The coalition government has announced a new “labor market deal” to increase flexibility of employment for workers and improve work/life balance, with the aim of increasing the employment rate for people age 20 to 64 to 80% by 2030 (the rate was 71% in the third quarter of 2021). Reaction to the proposals from business and labor leaders has been mixed, and the deal still requires enactment by parliament before becoming law.
The extent to which the deal, if enacted, would draw more workers into the workforce is difficult to assess.
Belgium’s employment rate for workers age 20 to 64 at 71% as of 2021 is well below neighboring Germany (81%) and the Netherlands (83%), but its employment rate for prime working age (age 25 to 54) at 81% is more competitive, only around 5% lower than the rates of its immediate neighbors (Eurostat data); however, the employment rate for workers age 55 to 64 is much lower (55%), compared with 73% in both the Netherlands and Germany. It’s not evident that the proposed measures would be sufficient to close this large gap.